Microfoundations of Ecosystems: The Hypothesis-Led Firm and Capability Growth

Existing research on ecosystems is overly descriptive and structural. While description and structure are important, in this essay we argue for a microanalytic and firm-specific approach to ecosystems. We focus on the “hypothesis-led” firm—the role that a firm-specific hypothesis plays in capability development and the attendant growth of ecosystems. Ecosystems need to be hypothesis-concordant and aligned to enable value creation. We also discuss the implications of our arguments for search- and demand-based approaches to ecosystems and point toward a hypothesis- and supply-based alternative.